Relaunching The 'Noris' - Marketing Tom

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Integrated Communications (2101) Membership # 40033433

Relaunching

The 'Noris' coloured pencil through Integrated

Marketing Communications

a report Prepared for SMT by Marketing Executive, Staedtler (UK) Ltd. 29 June 2018

Membership Number: 40033433

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Contents

1. (a) 1.1 Introduction 4

1. (a) 1.2 Organisation background 4 1. (a) 1.3 Organisation name - Staedtler (UK) Ltd. 4 1. (a) 1.4 Type of organisation 4 1. (a) 1.5 Size of organisation 4 1. (a) 1.6 Products and services 4 1. (a) 1.7 Customer base 4 1. (a) 1.8 Competitors 4 1 (b) 1.1 Internal communication methods 5 1. (b) 1.2 Social media - Facebook 5 1. (b) 1.3 Email 5 1. (b) 1.4 New product development meetings 5 1. (b) 1.5 Hands-on workshop 6 1. (c) 1.1 Personal and practical marketing skills 6

1. (c) 1.2 Relationship building 6 1. (c) 1.3 Communication skills 7 1. (c) 1.4 Research 7 1. (c) 1.5 Planning - SOSTAC 7 2. (a) 1.1. Validating the relaunch 8 2. (a) 1.2 Value proposition 8 2. (a) 1.3 Communication models and buyer behaviour 8 2. (a) 1.4 Campaign planning 9 2. (a) 1.5 Communication choice 9 2. (b) 1.1 Branding 9

2. (b) 1.2 The 'Noris' product 9 2. (b) 1.3 Product benefits 9 2. (b) 1.4 Product adoption 10 2. (b) 1.5 NPD 10 2. (b) 1.6 Brand definition 10 2 (b) 1.7 Kapferer's brand identity prism 10

2 (b) 1.8 Brand personality 10

2 (b) 1.9 Brand equity 11

2 (b) 1.10 Balance sheet 11 2 (c) 1.1 Creative brief 11

3. (a) 1. 1 Communication tools 13 3. (a) 1.2 Marketing mix 13

3. (a) 1.3 Corporate reputation 13 3. (a) 1.4 Above-the-line promotion - advertising 13 3. (a) 1.5 Below-the-line promotion 13 3. (a) 1.6 Public relations 13 3. (a) 1.7 Sponsorship 13 3. (a) 1.8 Digital marketing 14

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3. (b) 1.1 Recommended marketing communications plan 14 3. (b) 1.2 Role of communications 14 3. (b) 1.3 Communications plan objectives 14 3. (b) 1.4 Stakeholders 15 3. (b) 1.5 Integrated marketing communications planning 15 3. (b) 1.6 Context 15

3. (b) 1.7 Integrated marketing communications goals 15

3. (b) 1.8 Push and pull 15

3. (b) 1. 9 Coordinated communications mix 16

3. (b) 1.10 Multi-channel 16

3. (b) 1.11 Agency relationships 16

3. (b) 1.12 Implementation 17

3. (b) 1. 13 Relationship between internal and external stakeholders 18

3. (b) 1.14 Barriers to integration 18 3. (b) 1.15 Levels of integration 18

3. (b) 1. 16 Control and evaluation 18

References 20 Bibliography 21

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1 (a) 1.1 Introduction

The purpose of this report is to address a decline in the sales of the Staedtler (UK) Ltd. 'Noris' coloured pencil due to changing customer wants and needs, by relaunching to a different demographic. Utilizing Integrated Marketing Communications the brand can be repositioned, broadening the market, helping deliver on the overarching company goals.

1. (a) 1.2 Organisation background

1. (a) 1.3 Organisation name - Staedtler (UK) Ltd. Founded in Germany in 1835 Staedtler is one of the world's leading manufacturers of quality pencils and is represented globally on every continent, in 150 countries with 21 subsidiaries including Staedtler (UK) Ltd. based in Pencoed, South Wales.

1. (a) 1.4 Type of organisation Staedtler (UK) Ltd. is a private limited company operating within the U.K. stationery industry worth £2.06bn (Verdict Retail, 2016) and as a subsidiary, is supported by the corporate marketing plan of its global parent company with autonomy to implement local campaigns.

1. (a) 1.5 Size of organisation Worldwide, the company has 3,500 employees with 25 based in Pencoed. U.K. turnover rose to £27m in the year ending 31 December 2017, up from £25.5m in 2016 with anticipated growth of 8% over 4 years. Pre-tax profits climbed £700,000 to £1.7m in the same period. Brexit and the € exchange rate could make Staedtler (UK) Ltd. uncompetitive against other European manufacturers and be detrimental to the organisation's growth.

1. (a) 1.6 Products and services Staedtler (UK) Ltd. currently claims position as the 'No.1 Coloured Pencil Supplier' in the UK with over 20% value share, (GfK, 2018) but anticipates losing market share due to emergent macro-environment situations such as government budget cuts and inflation rates, limiting the buying power of Education suppliers, a significant part of Staedtler (UK) Ltd. business. In addition to coloured pencils the product portfolio also includes graphite pencils, highlighters, writing and colouring feltpens, and a premium craft range.

1. (a) 1.7 Customer base Staedtler (UK) Ltd. has a wide-ranging customer base, from hobbyists and professional artists to teachers, tots and teenagers, and segments between B2B and B2C. The route to market is via wholesalers, buying groups, mass market, and independent trade. Products supplied to the Educational channel are procured through local authority tenders. The organisation value share is split 35% Education, 32% Retail, 18% Commercial B2B, 15% Trade.

1. (a) 1.8 Competitors Bic Group and Helix Maped published the strongest growth figures across 'Total Writing Instruments' in 2107 (GfK, 2018) with a rate of 36% and 10% respectively. Staedtler (UK) Ltd. presented -7% growth rate. 'Total writing' encompasses coloured pencils with 'BIC Kids Evolution ECOlutions' and 'Helix Maped Color'Peps Classic' challenging the Noris pencil. Crayola, Uniball and Stabilo also have a strong presence in the coloured pencil category. The company goals of Staedtler (UK) Ltd. are to be brand leader across 'Total Writing Instruments' by 2020. Relaunching the Noris coloured pencil can help increase profits and growth to deliver on this goal. Embedding internal 'best' practices during the relaunch is imperative; "the new way must be dramatised internally, to employees, since their commitment and evangelism will be crucial to eventual success". (Edwards, 2013)

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1 (b) 1.1 Internal communication methods

Staedtler (UK) Ltd. is a hierarchical organization made up of cross-functional teams focusing on New Product Development (NPD) and route to market, and includes Marketing, Customer Service, Finance, Sales and remote workers. To gain competitive advantage over Bic and Helix, Staedtler (UK) Ltd. as a marketing-oriented organisation, must promote a positive business culture that "respects and engages with its employees, its customers, wider society, and the environment". (Bewick, 2016) Such market domains are categorised in Christopher's '6 markets stakeholder model' as internal, connected and external stakeholders; publics who have an interest in the business activity of Staedtler (UK) Ltd. Online and offline communication methods can inform and persuade internal stakeholders to deliver a clear, consistent message to all connected stakeholders, influencing decisions on the brand.

1 (b) 1.2 Social media - Facebook Owned digital media such as Staedtler (UK) Ltd.'s Facebook page, engages primarily with target customers, and is additionally helpful in internal communications as an online conduit for continuous information gathering. Insight at the NPD stage enables cross-functional teams to capitalize on sentiments and contribute equally to the relaunch of the 'Noris' pencil using combined expertise. Inclusion creates buy-in from employees fostering a connected, loyal workforce creating brand ambassadors. Thus "social media is not just a marketing tool. It is …a new way of running a business" (Smith, 2016 p.12) to satisfy customer needs. Traditional internal marketing methods share knowledge on a 'need-to-know' basis, filtered through from Management. Social media provides real time information that all employees can 'pull' on demand, as opposed to having information 'pushed' on them from managers. "Social media…as a tool for information dissemination needs to expand if companies want to get the most from their employees". (Wadee, 2013) Compared with email and some offline internal communication methods, Facebook can overwhelm, adding to 'marketing noise' diluting important messages. Facebook is in the public domain more than company meetings and email, with content easily accessible to Bic and Helix who could gain competitive advantage, targeting the same demographic with similar messaging to relaunch a product.

1. (b) 1.3 Email Similarly to Facebook, email can disseminate information to employees online, and as a form of direct marketing, the promotional message can be more precisely targeted to the recipient, increasing its relevance and ultimately, its effectiveness. "Strategic targeting isn’t a concept that’s often paired with internal communications. But when you think about it, internal communications is just marketing to employees." (Ilif, 2016) Controlled email access allows the distribution of more strategic content than social media as communications are not in the public (and competitors!) domain, e.g. the why we are doing what we are doing. Regularly publishing key performance indicators (KPI's), sales figures and milestones, enables employees to see the results of their efforts, strengthening motivation and increasing job satisfaction. Email also facilitates private dialogue encouraging employees to propose ideas and share anecdotes that they may feel embarrassed to discuss openly in a meeting. An advantage of email over Facebook is being able to be selective with targeted messages, increasing the chances of engagement with the recipient. Adopting 'best practice' when writing can educate internal employees about how to communicate with external stakeholders, strengthening consistency in messaging.

1 (b) 1.4 New product development meetings In the digital era the benefits of an offline meeting can be overlooked, considered 'old-fashioned', yet face-to-face dialogue is crucial to cross-functional collaboration and ultimate success in NPD. "Internal markets, (the organisation including internal departments and

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staff)" (Christopher et al., 1991 cited in Payne et al, 2005) cannot co-exist in silos operating with different agendas. Resources must be harnessed, combining expertise and the "untapped potential of collective brainpower" (Kinsey Goman, C., 2015) working collaboratively towards the organisations common goal of becoming brand leader across 'Total Writing Instruments' by relaunching the 'Noris' pencil to a different demographic. It is Marketing's responsibility to act as a bridge between functions facilitating meetings with representation from all internal departments to inform, educate and persuade at relaunch conception, developing strategies based on organisation-wide analysis of the Noris pencil lifecycle whilst also championing the external customer. The 'design' of the meeting will determine its effectiveness from a comfortable physical environment, inspiring conversation to a culture that encourages free expression of ideas leading to innovation. Meetings can embed inclusivity, reinforce company values and develop trust, engendering co-operation. Collectively new discussions may emerge, previously unconsidered, whereas email is more prescriptive, relaying information rather than acting as a catalyst to create it.

1 (b) 1.5 Hands-on workshop Change can be unsettling especially if imposed from above, undermining any relaunch efforts by disengaging staff and potentially creating hostility towards the organisation. Communicating the relaunch through a series of practical workshops will strengthen engagement between Marketing and other functions by supporting colleagues through the change process in a fun way. Such informal exercises can help to explain the rationale behind the new strategy, and can be more impactful than online written communications. The Marketing relaunch vision needs to be the same for customers and staff with mirrored communication messages. Demonstrating the features and benefits of the 'Noris' pencil will bring the product to life and help employees identify with the Staedtler brand. Inviting brand ambassadors to host workshops will add credibility and a buzz, creating memories and stories that can be shared as conversations internally, with customers and as Public Relation activity across social media, integrating offline activity across online media . "When employees live that vision, customers are much more likely to experience the company in a way that’s consistent with what you’ve promised". (Mitchell, 2002) Whilst Facebook can provide invaluable customer insight and email can be targeted and focused, such online communications are easy to ignore in a communication message overload. Offline meetings and workshops, although more time-consuming, can be more successful in communicating the relaunch, purely by virtue of not being so easy to ignore.

1 (c) 1.1 Personal and practical marketing skills

For Staedtler (UK) Ltd. to successfully communicate the relaunch of the 'Noris' pencil internally, marketing relationship building and communication skills are essential. Corporate myth has bestowed various nick-names on marketers from the 'colouring department' to the 'fluffy department' and an ability to articulate well can help to dispel this false perception. Presenting research and planning can also garner buy-in from the 'non-fluffy departments', justifying budgetary spends and requests.

1 (c) 1.2 Relationship building Relationship “Marketing is to establish, maintain, and enhance relationships with customers …so that the objectives of the parties involved are met.” (Grönroos, C. 1990 cited in Grönroos, C. 1994, p.9). Employees of Staedtler (UK) Ltd. are customers and by meeting their objectives throughout the relaunch, collaboration can flourish. As the bridge between functions, marketers can influence organisational culture using personal relationship building skills to ensure the strategy, goals and visions behind the relaunch are embedded internally.

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Building relationships and communicating details of the relaunch empowers staff with positive rhetoric and informed decision-making, enabling not only marketers, but Customer Service, Finance, Sales and remote workers to influence "customer relations, customer satisfaction, customer perceived quality, and revenue" becoming in effect, "Part-time" marketers (Gummesson, E. 1991 p.60). Regular dialogue between functions can help departments develop an understanding of the priorities and workloads other departments and remote workers and freelancers feel more connected to the 'physical' office, fostering inclusivity and team work.

1 (c) 1.3 Communication skills To successfully relaunch the Noris pencil externally, Staedtler (UK) Ltd. must ideally communicate the strategy internally, in a way that is compatible and workable. (DePelsmacker et al, 2010) Internal communications are becoming ever more sophisticated, delivered over a plethora of online and offline channels, but the essence of good communication is to be heard, and to do this, marketers need to listen. Content must be collaboratively created making it more meaningful and relevant, and messages targeted specifically to individual audiences to ensure understanding and cooperation - a different communication approach would be adopted for example when talking to the MD of Staedtler (UK) Ltd. compared to colleagues on the factory floor. Philip Kotler describes Integrated Marketing Communications as "the concept under which a company carefully integrates and co-ordinates its many communications channels to deliver a clear, consistent message about the organisation and its products". (Kotler, P. cited in Smart Insights). To 'communicate with' rather than ‘promoting to’ (Hughes, 2007) the concept needs to be delivered on a personal, rather than corporate level to promote engagement.

1 (c) 1.4 Research Research grounds strategy and evidences why Staedtler (UK) Ltd. should relaunch the 'Noris' pencil to address a decline in sales. As a practical skill, primary research, carried out specifically to answer 'why' and secondary research that examines existing data, provides evidence to present within the organisation to support decisions made by the Marketing department. Researching and analysing trends, competitors, demand, target audiences, and product life cycle can inform many decisions, including NPD, repositioning the 'Noris' brand using a different marketing approach, advertising, forecasting, and sales pitches; essential cross-functional collateral. Primary and secondary research can be further segmented into 'qualitative' information that reveals personal sentiment and emotion, and 'quantitative' information for statistical evidence. With the increasing use of review sites and digital savvy customers sharing experiences across social media, the internet can "provide a viable alternative to traditional consumer focus groups" (Anon, 2014) making the Staedtler (UK) Ltd. Facebook page a valuable insight resource. "There are limitations [to it]," however. "For example, consumers can tend to follow the pack -- something that is far more transparent in a traditional focus group, where you soon see who is controlling the discussion and leading opinion. (Anon, 2014)

1 (c) 1.5 Planning - SOSTAC The SOSTAC model devised by PR Smith is an invaluable practical skill for marketing communications planning because it is easy to remember! It breaks the planning process down into 6 steps: Situation Analysis, the where we are now; Objectives, where do we want to be; Strategy, how are we going to get there; Tactics, how exactly are we going to get there (communication tools and channels); Action, the details of Tactics, who is going to do what, when and how; and Control, did we get there.

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2. (a) 1.1. Validating the relaunch

The PESTLE audit of external influences revealed situations negatively effecting the 'Product Life Cycle' (PLC), or the life of the market for the 'Noris' pencil in the education channel, with a forecast decrease in market share across 'Coloured Pencil Suppliers'. A current and growing macro-environment trend, 'Adult Colouring' is simultaneously creating a demand for coloured pencils from a different segment presenting an opportunity to build a strong market position. The Boston Consulting group’s product portfolio matrix (BCG matrix) categorizes products in high growth markets with low market share as a 'Question mark or Problem Child' that requires investment to become a 'Star' and gain market share. (Hanlon, 2018) A relaunch for the 'Noris' pencil is the investment necessary therefore for the product to shine again! Staedtler (UK) Ltd. already has a strong brand presence and existing distribution channels in education for the 'Noris' pencil, therefore it makes economic sense to reposition the pencil using communications to target a different segment rather than incur the expense associated with developing a new product. By repositioning the 'Noris' pencil, targeting adults in the retail stationery channel in addition to children in the education channel, Staedtler (UK) Ltd. can broaden, or stretch the market for an existing product and strengthen its 'value proposition'. Similarly, in 1982 the Lucozade energy drink "was repositioned from a drink that aided recovery to a drink that replaced lost energy" (Superbrands, 2004 cited in Campaign, 2005), targeting well, fit customers instead of poorly ones.

2 (a) 1.2 Value proposition The value proposition of the 'Noris' brand to the new segment is the 'bundle of benefits' the pencil can offer helping to solve the problem of not being able to find a coloured pencil that perfectly fits requirements from a brand that matches the segments' values. Effectively and efficiently communicating this to stakeholders, clearly stating who the new target segment is with a 'Unique Selling Proposition' (USP) differentiating the product from the competition, gains competitive advantage. The Staedtler (UK) Ltd. pencil must be perceived as satisfying customers' needs and wants for a quality 'Adult Colouring' pencil, better than Bic and Helix for similar sacrifices e.g. money, time or emotion.

2 (a) 1.3 Communication models and buyer behaviour Traditionally sales promotion, advertising, personal selling, direct marketing and public relations (PR) affected how customers perceived a brand. In contemporary marketing however, all 7 P's of the marketing mix contribute to effectively communicating a relaunch. It is important to selectively choose the most cost-effective elements from the marketing communications mix for maximum return on investment (ROI). Tools that can help the decision making process include hierarchical buyer behaviour models such as St. Elmo Lewis's AIDA funnel (1898) that "identifies cognitive stages an individual goes through during the buying process for a product" (Hanlon, 2013). The acronym stands for Attention, Interest, Desire and Action with many more models being developed since such as Lavidge and Steiner who explored consumer choice between competitors product (Lavidge and Steiner, 1961, cited in CIM, 2017). The digital era has created a third dimension between the company and customer - the voice of other customers with reviews, testimonials, forums, research and evaluation adding to customer journey variables. Another tool used to analyse customer behaviour is the FCB or Vaughn Planning Grid (Vaughn, 1986 cited in De Pelsmacker et al 2010) that splits customer decision making into 'emotional' and ' intellectual', dividing 'thinking' and 'feeling' into high and low involvement from the customer. Using this model the 'Noris' pencil is positioned in the 'highly involved feeling' quadrant. As a 'Fast Moving Consumer Good' (FMCG) with similar features to other pencils, communications must emphasize the psychological or 'augmented' benefits of the

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'Noris' brand to differentiate it from the competition. The credibility of Staedtler (UK) Ltd. with its enviable heritage and established market-place acceptance psychologically reduces perceived risks to customers, saving time in decision making.

2 (a) 1.4 Campaign planning The RABOSTIC tool examines the internal, micro environment and current situation and is "about how integrated communications are planned, organized and managed", in a "process based around a research and decision-making cycle" (Pickton, 2017). The tool identifies stakeholders including the customer segment Staedtler (UK) Ltd. needs to target. The resulting communication objectives endeavour to shift attitudes in the target segment by differentiating the 'Noris' pencil from the competition, feeding marketing objectives that in turn feed the overarching goal of Staedtler (UK) Ltd. to become brand leader across 'Total Writing Instruments' by 2020. Knowing the needs and wants of the customer will determine the communications strategy ensuring that the communications mix differentiates, reminds, informs and persuades (DRIP model) leading to positioning in the customers mind. (Fill, 2002)

2 (a) 1.5 Communication choice To be effective, communication messages around the relaunch must be targeted and delivered across preferred media and platforms and therefore of value to the customer. Media selection must be strategic and differentiate between acquisition and retention that adds to the lifetime value (LTV) of the 'Noris' pencil because "focusing on repeat customers creates a sustainable business". (Greenberg, 2018). Whether buying traditional print and broadcast media or digital social media and internet advertising, sources must be credible and trusted e.g. the eco credentials of the 'Noris' pencil and links to mindfulness would be wasted in 'The Sun' newspaper. Evaluating and continually analysing customer attitudinal and behavioral responses and level of engagement between Staedtler (UK) Ltd. will determine subsequent communications. "Efficient communications come from strategic coordination and can provide competitive advantage by focusing human, technical and financial resources". (CIM, 2017)

2. (b) 1.1 Branding

2 (b) 1.2 The 'Noris' product Having established the 'Noris' pencil is a mature product tapering to decline with minimal growth in the education channel, and identifying a developing demand in the retail channel for 'Adult Colouring', Staedtler (UK) Ltd. must establish a new product value that communicates emotionally with the new target audience, promoting the intangible, or augmented benefits of the pencil to reposition the brand in the mind of the customer. By influencing customer's future desires using the 'product' element of the marketing mix, a latent demand can be created to satisfy their needs and wants. As the 'Noris' pencil is in a mature phase in one market and potential growth in another, its position and longevity in the phases on the PLC curve is difficult to determine, and by addressing the decline now is the "real virtue of preplanning for market stretching and product life extension". (Levitt, 2018)

2 (b) 1.3 Product benefits Customers expect core and actual benefits from a product, core being the tangible features of the 'Noris' pencil; coloured lead used for colouring, and actual being the lead encased in a wooden barrel that enables the product to function. The augmentation dimension or service

layer is not expected and is what differentiates the 'Noris' brand from the competition; additional elements such as an on-line community that is valued by customers and stakeholders and is not available from other providers.

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2 (b) 1.4 Product adoption It is not necessary to communicate the central, functional features of the 'Noris' pencil to customers as the core competencies are already known through a deep awareness of the Staedtler brand and it's quality product portfolio through different market segmentation. Customers "often try to form an evaluation of it (the 'Noris' pencil) by using existing nodes of knowledge from multiple product or service categories". (Saaksjarvi, 2003 p.92) To increase product credibility and visibility, Staedtler (UK) Ltd. has partnered with Johanna Basford, attributed with starting the 'Adult Colouring' trend and an early adopter of the 'Noris' pencil as an 'adult' colouring instrument. Johanna is considered to be an opinion leader, recognised in a niche market and will represent the 'Noris' pencil positively as brand ambassador.

2 (b) 1.5 NPD As the 'Noris' pencil is not a break-through, innovation product but a modified old one, "This helps to reduce the time and cost of product development, whilst also ensuring a customer-led focus with marketing input at every stage of the development process". (CIM, 2017) As a specialist product aimed at a niche market segment, targeting communications at mass market would be wasteful on resources, therefore to relaunch the new product and introduce it to a new market, a strategic approach is required with a strong focus on brand awareness.

2 (b) 1.6 Brand definition "Brands protect and defend a business from competition, as they differentiate the product by adding perceived value". (Smith, P 2016 p 35) Branding augments products with values and associations that are meaningful to Staedtler (UK) Ltds'. customers, and is a 'promise' delivered by all the other experiences stakeholders expect from the organisation. (Fill, 2002)

2 (b) 1.7 Kapferer's brand identity prism The established brand name of Staedtler (UK) Ltd. provides a platform for brand extensions, and using models and methodologies can help and determine which brand in the organisation's portfolio is most likely to be accepted as a new product, helping to predict the

success or failure of the relaunch. (Viot, 2011) Kapferer likens branding in his 2004 study 'Brand Identity Prism' to pictures being delivered across a conversation between Staedtler (UK) Ltd. - the sender and its' customers - the recipients. The brand’s tangible and intangible facets form a connection between the sender and the receiver. Physique and Personality create a picture of the 'Noris' pencil, the unique striped appearance in the hands of acclaimed artist and illustrator Johanna Basford. Reflection and Self-image create a picture of how a customer perceives the Staedtler brand,

which may be different to the target audience, and how the customer wants to be perceived through using a premium quality colouring instrument. Relationship and Culture create an image of the relationship between Staedtler (UK) Ltd. and its customers, engaging with the on-line 'Adult Colouring' community, and country of origin values such as German engineering and precision add the cultural dimension. (Mosarrat, 2014)

2 (b) 1.8 Brand personality The facet of 'Personality' helps to position the Staedtler (UK) Ltd. brand in the marketplace and differentiates the 'Noris' pencil from competitor brands Bic and Helix in a way that is sustainable because it is very difficult, and usually ineffective, to copy. Positioning summarizes the brand for the target audience, encapsulating the problem-solving benefits of the pencil better than the competition. Using a new marketing approach to target 'Adult Colourers' repositions the product, communicating the same personality to a different target group. Clearly and consistently communicating the personality of Staedtler; wholesome, customer focused, respected, ensures emotional resonance and top of mind recognition.

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This leads to customer loyalty, visualized in the 'Ladder of Loyalty' model, where customers move up imaginary 'rungs' from preference and belonging to advocacy and fanaticism, becoming brand ambassadors and creating value for Staedtler (UK) Ltd. All of these experiences lead to value in the brand which leads to brand equity, a valuable asset.

2 (b) 1.9 Brand equity Brand equity is recognized as a financial asset and must be monitored like any other asset as it benefits the future income of Staedtler (UK) Ltd. creating competitive advantage. "Considering brands as assets with equity should be seen as a transformational idea in marketing", (Aaker, 2014) because of the associated customer and organisation benefits. The brand creates goodwill and equity creates deep and broad brand awareness affecting ease of recognition and purchase consideration, fostering a relationship between Staedtler (UK) Ltd. and its' customers. Customers already associate the Staedtler brand with quality, innovative and inspirational products, environmental concerns and social responsibility, and creative networking. Being cognitively aware of these attributes removes many stages from the decision making process especially where the 'Decision Making Unit' (DMU) is large such as in B2B purchasing. Being endorsed by a influencer such as Johanna Basford reduces the purchase risk further as the 'Noris' pencil is recommended by a respected, highly credible customer and not the manufacturer. The 'purchase decision research' is perceived to have been completed by Johanna, removing a stage in the buying process that David Ogilvy once described as "The Misery of Choice". (Smith et al, 2016)

2 (b) 1.10 Balance sheet The value of the Staedtler 'brand' to the organisation is immeasurable and must be effectively managed and maintained to continue differentiation from the competition. Differentiation justifies higher prices points with higher margins and increased profits, generating leverage with retailers and garnering support from distribution channels as perceived risks are minimized. Marketing costs to the organisation and its' channels are reduced because pre-conceived brand awareness has already 'done the hard work'. More retail outlets creates more exposure, that creates trust that leads to equity, and all of this creates barriers to entry for newcomers to the stationery category market ultimately making Staedtler (UK) Ltd. less vulnerable to competition from Bic and Helix.

2 (c) 1.1 Creative brief The creative brief summarises the relaunch campaign into a succinct document that Staedtler (UK) Ltd. can give to external agencies. From the brief the agency can create a proposition to reposition the 'Noris' pencil brand in an "attention-getting but easy to catch way". (De Pelsmacker, 2010 p218)

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3. (a) 1. 1 Communication tools

3. (a) 1.2 Marketing mix Marketing communications come under the marketing mix umbrella, categorised as the 'Promotion' element and divided into advertising, PR, sponsorship, sales promotion, direct marketing, personal selling, point-of-sale, exhibitions and digital marketing. When the elements are seamlessly combined, communications becomes 'integrated' ensuring the relaunch of the 'Noris' pencil is consistently marketed. (De Pelsmacker et al, 2010) How the communications are evaluated by stakeholders over time in terms of perceived messaging, social and environmental information about Staedtler (UK) Ltd. and comparison with competitor communications, constitutes corporate reputation. (Gotsi et al, 2001)

3. (a) 1.3 Corporate reputation To maintain and enhance corporate reputation during the 'Noris' pencil relaunch in a 'Business to Consumer' (B2C) context, the most appropriate elements of 'Promotion' are advertising, PR, sponsorship and digital marketing. This combination traverses 'above-the-line' (represents actual outlays) and 'below-the-line' (sacrificed income) promotions. (Jones, J. 1990) 'Through-the-line' communications combine 'above and below-the line' in an integrated, 360° approach that begins with brand awareness and ends with leads and sales.

3. (a) 1.4 Above-the-line promotion - advertising Advertising across print, digital and broadcast media to a large, or mass audience, usually untargeted, is classified as 'above-the-line' advertising. In contrast to PR, sponsorship and 'earned' digital marketing, 'Paid-for-media' can be determined and controlled by Staedtler (UK) Ltd. and therefore ensures all messages, images and symbols are correct and consistent, and conform to the organisations corporate identity. The main aims of above-the-line promotion are to inform customers about the relaunch, raise awareness of the 'Noris' brand and its credentials and positioning the brand in the customers mind. However, in a 'consumer-to consumer age' advertising message credibility can be low as the source is seen as 'seller-created'. Mass media advertising is expensive in terms of absolute costs and the amount of wastage; not achieving its objectives, therefore the focus for Staedtler (UK) Ltd. as an SME in the UK market, is sector specific retail advertising.

3. (a) 1.5 Below-the-line promotion PR, sponsorship and digital marketing are classified as 'below-the-line' promotions because Staedtler (UK) Ltd. can be more specific about the audience, communicating memorable activities to increase customer engagement. 'Below-the-line' promotions are also more cost-effective than advertising in terms of reaching a particular audience. (Smith et al, 2016)

3. (a) 1.6 Public relations PR publicity as 'earned-media' is highly credible, perceived as third party endorsement or 'Voice of the Consumer' (VOC) which is more believable and trusted. As an SME, communications can be direct between management and PR agents without lengthy sign-off procedures and complex purchase processes, ensuring messages are timely and not diluted by many 'contributors'! Unlike in-house editorial however, messages published by VOC are uncontrollable. Also, compared with sponsorship and digital marketing, the level of customer interaction and engagement is low.

3. (a) 1.7 Sponsorship Sponsorship is readily achievable for Staedtler (UK) Ltd. because of established links and relationships in the retail channel that can be strengthened further by investing in events such as in-store demonstrations. The absolute costs to the organisation are low, compared with advertising, as support can be in terms of product, bought in from the global parent

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company at cost price. Such events are an opportunity to engage with a niche, receptive audience creating brand awareness and strengthening the brand personality using recognized influencers to add credibility. The functional benefits of the 'Noris' pencil can be highlighted, positioning the brand favourably against the competition. This promotional method however is uncontrollable as it relies on freelancers, who although considered as internal stakeholders may not be aligned with the organisations' overarching goals or familiar with organisational culture. It is impractical for Staedtler (UK) Ltd. employees to 'police' every demonstration, therefore guidelines and training must be implemented to empower freelancers to represent the values of the organisation, in other words, employee branding.

3. (a) 1.8 Digital marketing Digital marketing that encompasses search engines, websites, social media, email, and mobile apps. has become an integral part of 'below-the-line' promotions helping to create relationships with customers online. Communications can be precisely targeted and more comprehensive than advertising and digital marketing is cost-effective. 'Owned media' such as the Staedtler (UK) Ltd. website can be controlled, however in the 'earned media' domain of social media the rising phenomenon of customer reviews eliminates control. "We are living in a service economy…and product parity (the fact that many products…seem almost identical in terms of features and quality) means that the brand and the trust we have in it are the deciding factors for consumers". (Roper et al, 2012) Digital developments have significantly increased the power of 'Word of Mouth' (WOM), and "rising numbers of social users…have led to the maturing of social as a communications platform. (EBSCOhost, 2014) WOM credibility is high because of trusted source credibility, therefore conversations must be monitored and responded to continually to preserve an effective social media brand presence and maintain corporate reputation.

3. (b) 1.1 Recommended marketing communications plan

The overarching goal of Staedtler (UK) Ltd. is to become brand leader across 'Total Writing Instruments', that includes coloured pencils. The external audit revealed the market for the 'Noris' pencil in the education channel was decreasing and highlighted an opportunity to enter a new market segment with a modified product, stretching the market by repositioning. Communications that flow between the organisation and its' customers satisfies the customers' needs and wants even if they don't know what they are yet, referred to as latent demand.

3. (b) 1.2 Role of communications Communications can differentiate the 'Noris' pencil from competition that offer product parity by informing, persuading, reinforcing and building images as illustrated in the 'DRIP' model created by Chris Fill to support communications planning. The most important factor in repositioning the 'Noris' pencil is Differentiation from coloured pencils offered by competitors Bic and Helix as this creates competitive advantage helping to deliver on the company goal. This therefore becomes the primary objective of the communications plan. Reinforcing previous experiences of using the 'Noris' pencil, using nostalgia for example, can Remind the customer about the positive impression they had as a child, Reassuring them and minimizing the perceived risk of future purchases. To Inform customers is to educate them about the 'Noris' brand and to Persuade is to convince customers to interact with Staedtler (UK) Ltd. and discover the benefits offered by the 'Noris' pencil. (Fill et al. 2011)

3. (b) 1.3 Communications plan objectives Communication, or promotional objectives are fed from the corporate, marketing and communication goals, those of becoming brand leader across 'Total Writing Instruments' by

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2020, demonstrating growth of 40%+ and to position the 'Noris' pencil as the brand of choice in 'Adult Colouring' over the next 2 years. The resultant communication objectives are:

Differentiation of the 'Noris' coloured pencil in the UK from the offerings of BIC and Helix

Repositioning the 'Noris' pencil from a toy to a colouring instrument

Engagement with a different audience; adults in addition to children - market stretching Effective objectives need to be specific, measurable, achievable, realistic and time bound, (SMART - see IMC plan), and target internal, external and connected stakeholders.

3. (b) 1.4 Stakeholders Corporate reputation "implies credibility, trustworthiness, reliability and responsibility". (De Pelsmacker et al, 2010 p26) If stakeholders identify an inconsistency between what Staedtler (UK) Ltd. preaches and what it practices, they can threaten hard-earned trust, which in a 'consumer-to consumer age' can be instantaneous through WOM. Exposure to communications by stakeholders therefore, must reinforce the esteem in which the organisation is held with consistency; consistency with the values of customers, and the relationships forged with channel members. (De Pelsmacker et al, 2010) Both customers and channel members are classified as connected or primary stakeholders, having an interest in the performance of Staedtler (UK) Ltd.

3. (b) 1.5 Integrated marketing communications planning 'Integrated Marketing Communications' (IMC) can be identified as the strategic development, delivery and dialogue of consistent, coordinated messages, between stakeholders who have a willingness to share information for mutual long-term benefit." (Fill et al, 2011) Any strategy requires planning and there are many models devised to help the process including Fills' Marketing Communications Planning Framework and the APIC model (analysis, planning, implementation and control). Pickton and Broderick's RABOSTIC model is another interpretation, an acronym for Research, Audiences, Budgeting Objectives, Strategic development, Tactical decisions, Implementation and Control/evaluation. (CIM, 2017 p. 154)

3. (b) 1.6 Context The communication around the repositioning of the Noris pencil in a B2C context will be influenced by many different factors. During the Research and analysis phase of planning, previous campaigns were examined for parity. The 'Teachers' Club' digital marketing campaign revealed engagement to be a strong driver for success due to higher customer expectations. The market size for the Noris pencil is similarly small and niche, therefore the same principles should be applied. The target Audience includes mass market and targeted customers, and retail channel members, and communications must reflect their differing needs and designed accordingly. Budgeting Objectives address financials and internal resources and must consider the capabilities and capacity of Staedtler (UK) Ltd. having only 25 employees.

3. (b) 1.7 Integrated marketing communications goals The end goal of the 'Noris' pencil repositioning campaign is to relaunch the product into a different market segment by affecting behavioral and attitudinal responses. The communication goals are to create cognitive awareness through advertising, affect brand perception through advertising and PR, stimulate positive action through sales promotion and enhance corporate reputation through PR. The communications therefore must "stimulate a dialogue that will, ideally, lead to a succession of purchases and complete engagement" and determine the success or failure of the campaign. (Fill et al, 2011)

3. (b) 1.8 Push and pull Each of the communication tools, advertising, PR and sales promotion fall into three types of communication categories - push, pull and profile. 'Push' covers advertising and messages

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sent proactively from Staedtler (UK) Ltd. to its' customers, with their permission (being mindful of privacy regulations such as GDPR) to take product to them. In-store point-of-sale would 'shout' at a potential customer for attention, pushing product information on them. 'Profile' messages should influence significant stakeholders, creating emotional resonance through PR and 'Pull' messages reverse the flow of communication getting the customer to approach Staedtler (UK) Ltd. through WOM or sales promotion. Whether adopting a push, pull or profile strategy, all should be targeted and relevant to the audience to establish trust, create loyalty and maximise ROI.

3. (b) 1. 9 Coordinated communications mix "The promotional mix can be assembled in a variety of ways to achieve different outcomes, both cognitive and behavioural" (Hughes et al, 2007) and is to be targeted at two connected stakeholders. Customers, who influence revenue and WOM, can be targeted using a profile strategy during the initial stages of the relaunch, to create brand awareness repositioning the 'Noris' pencil through PR and sales promotions. Retail channel members that influence pricing and availability can be targeted using a push strategy, incentivizing retailers to merchandise to customers via POS. A pull strategy would be adopted once customers are aware of the repositioning. Strategic development uses research and analysis to inform decision-making to develop

the message, communications strategy and media mix (determined by the objectives). "The choice of media" is a Tactical decision and "whether it be paid for or not, should reflect the exchange preference of the audience...Media should become more personal and capable of customization, enable interaction and be discrete". (Hughes et al, 2007 p 53) Reflecting exchange preferences means communicating and interacting with the target audience via their preferred channel or platform such as magazines, mobile or social media, in other words; multi-channel.

3. (b) 1.10 Multi-channel It has now become a necessity within the realm of marketing, to continuously deliver relevant communications across all platforms, online and offline for an added-value experience, integrating digital services into promotional strategies. Technology keeps changing at pace with mobile marketing predicted to become the primary medium for marketing and advertising as "smartphone and tablet adoption continues to change how brands engage with customers". (Smith et al 2016) As nearly 8 out of 10 adults in the UK (73%) currently access the internet “on the go” using a mobile or smartphone for convenience, (ONS Statistical) it is imperative any communications are optimized to function on mobile devices.

3. (b) 1.11 Agency relationships External agencies add expertise to the marketing function of Staedtler (UK) Ltd. offering skills and credentials to complement the core team. Long-term, working relationships are important so that both parties understand each others' objectives and working practices. An integrated marketing campaign is likely to involve several agencies specializing in different channels often briefed to produce work to the same deadline. The skill lies in being able to manage different providers, linking their work together "to deliver quality products ... to customers as contracted, and achieve business objectives". (Gupta, 2015) The effect of integrating marketing communications (synergy) is greater than the effect of the action of each individual communication, delivering clear, consistent messaging to the target audience, which ultimately increases brand awareness. (Jankovic, 2012)

3. (b) 1.12 Implementation

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3. (b) 1. 13 Relationship between internal and external stakeholders For IMC to be effective, the 'Noris' pencil relaunch should be communicated internally first to enable employees, as internal stakeholders, to speak and advise knowledgably about the campaign. All Staedtler (UK) Ltd. employees are 'part-time' marketers and there needs to be a synergy across functions so it appears to external stakeholders that everyone is 'living the brand'. Synergy will lead to consistency in communications which is essential in integrated communications. Stakeholder mapping highlights whether stakeholders have high/low interest and support for the organisation and high/low power and influence, and provides strategic insight to create a targeted value proposition for each group (rational or emotional) and can determine what the organisation is seeking from each stakeholder group. Awareness of all stakeholders needs will lead to an effective coordinated mix. "Recent research shows that CEOs who put stakeholders’ interests ahead of profits generate greater workforce engagement and thus deliver the superior financial results that they have made a secondary goal". (Springman, 2011)

3. (b) 1.14 Barriers to integration Interests and agendas may not always be the same however between internal and external stakeholders. Intermediaries, such as retail channel members could be acting more favourably for competitors in return for discounts or stock availability. Internally, cross-functional misalignment and hierarchical structures can create negativity sensed by external stakeholders, affecting corporate reputation. Often, change will only be accepted if delivered by the CEO, especially in established organisations where silos are the cultural norm and unless delivered from as high as possible, employees do not buy-in to the message.

3. (b) 1.15 Levels of integration Outsourcing skills to agencies can impact levels of integration. One model suggests agencies can be at opposite ends of a continuum; one end being a highly integrated IMC provider but with no dedicated functional specialists, and the other end being a network of channel specialists sub-contracted by an umbrella agency but weak in integration.(Fill, 2001) Resource and time are important contributors to integration, marketers usually have neither!

3. (b) 1. 16 Control and evaluation Evaluation takes place when plans are put into action and the outcomes can be fed into future campaigns. Outcomes and outputs measure resultant changes from the campaign, against the SMART objectives. The objectives for each segment are slightly different and it follows that evaluation and financial analysis will differ. Agencies and industry data analysts can provide detailed, accurate statistics revealing customer behaviour, integrated with more cost-effective, in-house methodologies to provide a comprehensive picture of campaign success. Digital media effectiveness can be measured through positive feedback on social media or number of Facebook 'likes' indicating customer engagement. Google analytics measures touchpoints leading to conversions such as call-to-actions to download a competition entry form, and Facebook Insights tracks user interaction. Traditional media is also measureable in-house with limited resource. Elements within PR such as position on page, pictures being featured and the number of brand mentions can be collated from press cuttings. Digitally, Google Alert can identify brand name mentions online. Anecdotal evidence from internal and external stakeholders is also a valuable source of information measuring the impact of IMC. Evidenced evaluation can be presented to justify budget spends and future requests, and "then cycled back into…further development of the next planning phase. The information stream is constantly tapped into, both to input and to extract information, throughout the planning process…Whatever else the planning process seeks to do, it aims to result in plans which are, in essence, decisions about what we want to achieve and how we are going to achieve them". (Pickton et al, 2010)

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Relaunching The 'Noris' - Marketing Tom

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